In an interview with CNBC’s “Squawk Box Europe” on Wednesday at the World Economic Forum in Davos, Switzerland, Ripple CEO Brad Garlinghouse expressed his hopes for Ripple’s ongoing lawsuit with the SEC.
A decision should come “sometime in the coming single digit months,” maybe as soon as June, Garlinghouse says on the lawsuit. He continued by saying that although he is still open to the idea, he doesn’t think the company will settle the case.
According to Garlinghouse, “We have always said that we would love to settle, but it requires one very important thing, and that is that, on a going-forward basis, it’s clear that XRP is not a security.”
“The SEC and Gary Gensler have publicly said that they consider practically all cryptocurrencies to be securities. In the Venn diagram, that leaves very little room for settlement’’.
If XRP is declared to be a security, Ripple may be subject to far harsher restrictions with regard to the token. This could include demands for better investor protections and transparency disclosures, similar to those imposed on registered broker-dealers.
It might also serve as a model for numerous other blockchain and cryptocurrency projects that might later be categorized as securities.
According to Ripple CEO Brad Garlinghouse and General Counsel Stuart Alderoty, a ruling on the action is anticipated in the first half of 2023.
According to James K. Filan, the decision could be made in March 2023 or earlier. Stuart Alderoty believes that the decision, whenever it is announced, will have a significant impact on the development of cryptocurrencies in the US.
Bloomberg presents some observers’ viewpoints. According to Joseph Hall, a partner at Davis Polk & Wardwell who served as an SEC employee from 2003 to 2005, “the recent upheaval in the crypto markets might taint the court’s view.” You simply have to assume that the judge’s decision might be impacted by the investment losses they have witnessed, according to Hall.
‘’And the SEC will make it obvious to them that if they opt for a different decision, they won’t have the tools they need to stop this kind of activity’’.
Even if Ripple wins, it might not be the ticker-tape celebration that cryptocurrency enthusiasts are hoping for, according to Andrew Stoltmann, a securities lawsuit attorney based in Chicago.
According to Stoltmann, “I anticipate Congress will step in over the above and essentially decide who gets jurisdiction with regard to enforcement.”
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